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Notwithstanding the “Grand Bargain” Siren Song, there’s No Practical Argument for Tax Hikes

cchuba Wrote: Apr 10, 2012 9:57 AM
The Republicans should focus all of their energy on corporate tax reform to remove the horrible distortions in that area. A lower flat corporate tax that is revenue neutral would be hard to oppose, even by the Democrats. Also, remove ALL subsidies from the energy market, no more taxing oil companies to subsidize solar or ethanol. Instead have one sectory wide tax benefit that is applied to ALL companies including 'big oil' that allows double depreciation on capital investments. This would spur all energy production and truly be an 'all of the above' policy.
The Teleprompter Speaks Wrote: Apr 10, 2012 2:03 PM
Corporate income taxes are a political fiction. Just eliminate them.
johnm h Wrote: Apr 10, 2012 10:16 AM
Just get rid of the corporate tax. Tax corporate profits as ordinary income. It'll never happen because CEOs like the corporate tax. The corporate tax is the most distorting tax among all the distorting taxes in the code. It has no redeeming economic virtues. It is the vehicle for most corny deals. It doesn't collect additional revenue. It all comes from savings so exacerbates our current account deficit.
cchuba Wrote: Apr 10, 2012 12:24 PM
"Just get rid of the corporate tax. Tax corporate profits as ordinary income."

I 100% do not understand this statement, are you saying tax corporations at the personal income tax level or do not tax corporate income at all? If you mean the latter then I am 100% on board.
MoreFreedom Wrote: Apr 10, 2012 12:45 PM
Where do you get the idea that CEOs like the corporate tax? And you say the corporate tax doesn't produce (you incorrectly write "collect") any revenue? The corporate tax brought in 181 billion in 2011.

Hopefully your suggestion is to eliminate the tax, and when the profits flow to the stockholders or employees, they they pay personal income tax on it. That would be eliminating the double taxation on corporations (first taxing the corporate profits, then taxing the capital gains and dividends).
johnm h Wrote: Apr 10, 2012 1:27 PM
Sorry, yes eliminate corporate taxes. Tax the income either as dividends and capital gains, or if you want to get the rich, tax corporate profits as income of the holder of record. This is what I mean by it won't happen.
The Teleprompter Speaks Wrote: Apr 10, 2012 2:06 PM
Corporate income taxes are a political fiction. When the income is distributed to the shareholders, tax that.

Currently, we reduce the income of the shareholders by taxing the corporation. When what's left gets distributed to the shareholders, we tax each shareholder as well.
elko-mike Wrote: Apr 11, 2012 3:10 PM
What is actually taxed? We know that wealth is produced by the private sector and not the government. For if the government created wealth it would not need to tax.
According to Adam Smith, wealth is created by specialization and trade. With specialization we pay someone to do things for us that, in principle, we could do for ourselves. But we trade (pay is the use of money as a proxy for our labor) for the things we want because it is beneficial.
Thus at the lowest level wealth is created by trade and taxes, not matter the form, are necessarily imposed on the trades as that's where the wealth is.

Many people think that my opposition to tax increases is ideological, but they’re wrong.

If someone told me that I magically had the power to flick a switch and give the country a flat tax, but that simple and fair tax system would only be possible if the rate was set high enough to give the government an extra $100 billion of revenue each year, I would take the deal in a heartbeat.

If I was given the opportunity to abolish the Departments of Energy, Education, Transportation, Agriculture, and Housing and Urban Development, but I had to give the...

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